AFX: Commodity pairs trade on 7-month highs on gold and oil jumps
Commodity pair has opening higher Today's Monday session after the last week spikes on Gold is trading in highest level since March and oil has risen above 60.00 level. NZD/USD has reached 0.6240, 7-month high, as well as AUD/USD, that it has reached 7-month high too at 0.7870 and USD/CAD with its 1.1190.
Gold is trading in its highest level since March and the pair has reached 961.60 level against USD. Oil is trading around 61.00 usd by brl.
After reaching 0.7870, 7-month high in the late Friday, today the AUD/USD has found support at 0.7775 level and has begun to risen to take places above 0.7800 level and reach 0.7825. USD/CAD posted 1.1190 as 7-month low last Friday, today the pair has been trading in a small range between 1.1255 and 1.1280 since the beginning of the European session, after rising from 1.1210 intra-day low to reach 1.1280, intra-day high, in the European morning.
NZD/USD reached 0.6240 as 7-month high last Friday and it has begun to fall to reach 0.6150 during today's Asian session. After that, the pair has begun to rise toward 0.6200 level. Currently the pair is trading around 0.6195/0.6205, 0.15% below today's opening price.
Valeria Bednarik, FXstreet.com collaborator, commodities are supporting the related pairs high levels: "With gold again pushing higher, now around $960.00/oz, and supporting a bearish dollar, no strange to see AUD above the 0.7800 zone. Despite a probable retest of 0.80 levels is seen at this point, rally seems over extended in daily charts, with RSI close to overbought plus divergent momentum, suggest that a turn is imminent in the cross with USD."
Bednarik Concludes: "The 0.73~ is a possible midterm target for that movement. Rising oil prices also support CAD rise that reached the 1.1200 level past Friday, after accumulating in the week a 650 pips rise. Despite the bullish sentiment, market expect oil to stay between $50.0 $ 70.0 a barrel, so further appreciation in the Canadian currency seems limited at this point. USD/CAD could reach 1.3330 zone in the next sessions and if manage to break above that level, consider 1.15~ as next target in the pair."
